Schenker: “In some cases, the air cargo costs more than the fish itself”

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The global air traffic has been hit by the corona virus and so has the logistics of the food industry across the globe. 

Logistic giant Schenker is hourly experiencing how the wind of change is ruling the entire industry.

“There are big changes all the time, many suggestions are made, but fail before they are even realised,” says Schenker’s Head of Air Freight Morten Würgler.

Multiple flight companies have shown interest for different initiatives, but then the initiatives fail as possibilities of transportation limits.

“There has been thoughts on flying ghost flights to markets, to fly goods back, but nothing certain has been made yet,” he adds.

Especially the seafood industry is in a tough period, because big markets as China and US are closed and uncertain at this time, and the cost has reached extreme highs.

“The salmon industry is not known for paying as much for freight as others in the industry do. Therefore the seafood industry is experiencing huge changes currently,” Morten Würgler says and explains that the air freight prices are so high at the moment, that for many exporters the transportation is as expensive as the fish pr.kilo.

“In some cases, the air cargo costs more than the fish itself.”

Read also:“Large parts of Norwegian fish exports depend entirely on cargo capacity on passenger aircraft “

Salmon has usually had the advantage that it weighs more than it takes up space, and thus a good subsidy for the airlines. Now the fish exporters pay the same price as regular air freight as electronics and industrial products that can withstand a higher freight rate.

“We are looking for capacity, then it is up to the buyer and seller whether they will use the space at a given price,” emphasises Morten Würgler.

Morten Würgler says he can not say specifically how much the cost of airfreight in general has increased from before the crisis. But states that it is much higher than 50 %.

Schenker is working with all their costumers to find routes of transportation, but the cost is also much higher for the logistic giant itself.

“The whole world is screaming for capacity right now.”